Nonprofits Get a New Type of Donation: Cryptocurrency
Yet, she said, there are many resources, like the Giving Block, that allow people to donate cryptocurrency and nonprofits to receive it safely and relatively easily.
Donor-advised funds, which allow people to donate today for tax purposes and recommend charitable grants at a later date, have seen an increase in cryptocurrency donations. Among them, Fidelity Charitable, the largest donor-advised fund in the United States, with more than $ 35 billion in assets, and its main competitor, Schwab Charitable, with more than $ 17 billion.
So far this year, Fidelity Charitable has received $ 150 million in cryptocurrency, compared to $ 28 million for all of 2020 and $ 13 million in 2019, spokesperson Stephen Austin said. “The appreciated value of cryptocurrency is driving more and more donors to use this asset to fund their charitable giving as well as to increase the average size of each contribution,” he said.
What neither Fidelity Charitable nor Schwab Charitable do is manage the cryptocurrency, which means they sell it and place marketable securities or cash in the client’s donor advised fund.
“In general, charities are careful about how they want to manage assets,” said Todd Eckler, executive director of Fiduciary Trust Charitable, a donor-advised fund that has around $ 250 million in assets and n has no cryptocurrency capabilities. “You could see the value evaporate quite quickly. It is very volatile and it is not a good choice for many charities. “
For Mr. Zeller, who helped negotiate the Bitcoin donation at Penn, the ability to accept cryptocurrency is what matters most.
“It’s very nice to have the ability to do that when a donor says, ‘I have Bitcoin’,” he said. “We can accept it now without it blocking the university.”
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